UPDATE 3-Kellogg profit rises, keeps outlook

Nov 1 (Reuters) - Kellogg Co reportedhigher-than-expected quarterly profit on Thursday as strongperformance in its Pringles business offset costs related to arecall last month of Mini-Wheats.

The world's largest cereal maker reported net income of $296million, or 82 cents per share, for the third quarter, comparedwith $290 million, or 80 cents per share, a year earlier.

The results included 4 cents per share in integration costsrelated to the acquisition of Pringles.

Analysts on average were expecting 80 cents per share,according to Thomson Reuters I/B/E/S.

The company said higher commodity costs, a high single-digitincrease in brand-building investments, and costs related to therecall last month hurt operating profit.

The maker of Corn Flakes, Eggo waffles and Keebler cookiesrecalled some packages of Mini-Wheats in October due to thepossible presence of fragments of metal mesh.

In 2010, Kellogg had a massive recall of millions of boxesof cereal due to an unusual smell. In 2009 it recalled someKeebler cookies and Special K protein bars.

In 2011, Chief Executive John Bryant said the company hadcut too many jobs in recent years, which had led to problems,including food safety issues. It said it would spend anadditional $70 million to improve its manufacturing.

It said the latest recall cost it 6 cents per share, whichwas offset by better-than-expected performance of Pringles.